EURO-ZONE Growing Slower Than Expected

Yesterday, after a small setback the day before, the greenback bounced back to continue its appreciation against all major currency rivals. The dollar extended gains as it was also favored by the declining price of Crude Oil, climbing to a fresh one-year high versus a basket of rival currencies. Also helping the USD was the announcement of a reduction in the growth forecast (GDP) for the Euro-Zone, which was downgraded from 1.7% to 1.3% for this year. As a result, the EUR fell as low as 0.4% to 1.3951 reaching an 11-month low versus the USD. Against the JPY the greenback went up 0.6% at 107.44.
The dollar is also gaining support from the belief that the U.S. economy may be more resilient than most economies whose countries were further behind in terms of economic readjustment in the wake of the global credit crisis. This is precisely today’s case. Despite disappointing […]

Original post by Forextvblog

This entry was posted on Thursday, September 11th, 2008 at 7:23 am and is filed under trading, Crude Oil, gold, forex, Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.